What Are Cyclical Stocks?
Cyclical stocks are stocks that pay very high dividends, have relatively high stock prices, and rise or fall as the economy cycles. Such stocks are mostly speculative. In order to avoid the confusion caused by excessive speculation in the stock market or the sudden rise and fall of the stock market, the securities transaction management department often adopts certain control or restriction measures to affect the size of its transactions, and then control the large-scale market. fluctuation. These measures generally include: adjusting the margin ratio, reducing the mortgage rate, and stipulating the limit on the size of loans for credit transactions. [1]
Cyclical stocks
- Cyclical stocks are the largest number of stock types, which means payment
- Chinese typical
- Cyclical stocks are a relatively special product in value analysis. Their speciality is that for most stocks,
- No matter what kind of economic environment,
- For some time, the cyclical stock trend has been weaker than
Long-term cyclical stock investment method
- Cyclical stocks
- When the relevant industries and companies are at their worst, buy boldly at a low price and hold fast to wait for the boom to pick up; during the pick-up period, ignore the small fluctuations in stock prices, focus on the general trend, and ignore short-term ups and downs. Collected until the relevant industry reached its peak, it was thrown out of the brain, leaving nothing left, and left. This way you can keep your profits and your funds will not be trapped. Such stocks range from hundreds to thousands of cents from the lowest to the highest point, and their rise periods range from 3 to 5 years. Don't be greedy. In the course of this rise, the stock price fluctuates violently, and arbitrage often occurs after the rise for a period of time. It is common and normal for a callback of two or thirty cents. If you are smart and try to capture short-term ups and downs to earn small profits, you will find it easier to do things than you want. What's worse is that after the sale, the stock price does not fall back, you are not willing to buy it back, and lose the thicker profits in the future. Everyone is determined to make a lot of money, not to be small. Hold on tightly after buying at a low price, and then let go when the relevant industry reaches its peak, so that you can get a good profit without worrying and worrying about the short-term fluctuations of the stock price.
Periodic stocks master the buying and selling time
- Don't buy too early and sell too late.
- If you buy when the downturn in the relevant industry just appears and the stock price starts to fall, there is still a huge downside and you may suffer losses. If the relevant industry's prosperity improves and the stock price rises a bit, it will be sold off. It may be sold too early and it will be a pity to miss the opportunity to make huge profits. So it's wrong to buy too early and sell too late. This also means that your "reverse" skills are not enough. Of course, when you don't fall to the bottom and buy when you don't reach the top, you sell better than when you buy at the bottom. The reason most people make the mistake of buying too early and selling too late is because they have no ambition and are eager for quick profits and small profits. Another reason is that they are worried about losing the buying opportunity and losing the profits they have earned. Usually when a stock falls to the lowest and rises to the highest, it will linger at the bottom and peak for three or five months. There is enough time for you to buy at a low price and sell at a high price. When you do nt buy at the bottom of the valley, it s not because you do nt have enough time, but you do nt buy at all. You do nt buy because you are afraid and you do nt have the courage to buy. It is because of insatiable greed that makes you lose your mind.
Cyclical stocks agree
- Cyclical stocks
- When the cyclical stock price fell to the bottom, the investing public was "consistently" bearish on such stocks, and everyone-newspapers, radio, television, magazines, stock analysts, chartists, economists, "consistently" bad That the worst case scenario has not yet occurred. "Consistent" means that everyone has the same idea, and no one has objection. At this time, the stocks to be sold out were scarce to buy, and the stock price hovered at the bottom of the valley for two or three months. This is the end. Similarly, when all people are "unanimous" optimistic, there is no objection, the stock price hovering in a narrow range for two or three months, it is the top. This "consistent" is the most reliable signal for buying and selling. Iron and steel stocks have not yet reached a "consistent" view, so steel stocks are still in a "defensive" period.
Cyclical stock standard
- When buying and selling, it must be linked to the company's fundamentals, with the fundamentals as the standard for buying and selling.
- The purchase of cyclical stocks is best based on the company's position in the relevant industry, a 5-year profit record and the company's financial situation. It must be ensured that the companies in question can survive and recover when the economy recovers. It is more important to understand the importance of relevant industries in the national economy. For example, the demand for steel is always there, so the worst time is the buying opportunity.
Timing of cyclical stock purchases
- It's best to buy before the industry's business climate turns around so that you can buy even lower.
- Don't forget that stock prices are usually in the first six months of the economy. If you are showing signs of a rebound in the economy and the industry, you know that the worst period is outdated and it may be too late. Buying when there is no sign of recovery in the economy, it may take a long time to wait for the stock price to rebound, but the buying price may be the lowest and the risk is low. Since it is a cyclical enterprise, the boom will inevitably return. As long as there is patience, there will be gains. Therefore, cyclical stocks are only suitable for long-term investment-it is best to hold for 3 to 5 years.